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Klondike Gold extends Lone Star gold mineralization

Published 27 September 2017

Klondike Gold has reported drill assay results from two holes each at the Pioneer (LS17-95 and -96) and O’Neil (LS17-97 and -98) targets with drilling continuing at the Lone Star target area within its 527km2 Klondike district property, Yukon Territory.

Summary

  • Phase 2 step-out holes announced here including Pioneer to the east, and O’Neil to the west expands the known length of the Lone Star target gold mineralization in drill intercepts by 1,200 meters to a new overall total strike length of 2,000 meters, which remains open.
  • The Pioneer area 500 meter step-out to the east intersected 0.7 g/t Au over 10.7 meters in LS17-95, extending gold associated with the Lone Star target along the Bonanza fault 500 meters to the east.
  • The O’Neil area 700 meter step-out to the west intersected 0.5 g/t Au over 13.3 meters in LS17-98, extending specifically the Lone Star laminated schist lithology-controlled mineralization 700 meters to the west to a strike length of 1,500 meters.
  • Newly identified late cross-cutting faults potentially cross-cut or overprint the Bonanza fault and laminated schist gold-bearing units and also contain gold mineralization. At Pioneer, a minor cross-cutting fault assayed 0.4 g/t Au over 5.1 meters in LS17-96. At O’Neil, a significant cross-cutting fault intersected 0.6 g/t Au over 13.7 meters within anomalous gold mineralization averaging 0.3 g/t Au over 52.6 meters in LS17-97.
  • Phase 3 drilling with two rigs is ongoing. Approximately 60 holes are planned or pending assay.

Geology Summary:

The Company’s Klondike property has identified orogenic gold mineralization with gold introduced regionally by a series of major thrust faults acting as conduits. At the Lone Star target area, the ‘Bonanza fault’ is interpreted to be a regionally significant secondary structural focus controlling deposition of gold mineralization.

Gold mineralization occurs within ‘laminated schist’ striking at 310 degrees (northwest) parallel to the ‘Bonanza fault’.  The Bonanza fault dips approximately 50 degrees (northeast) semi-parallel to the hillside which falls toward Bonanza Creek (the 1896 Klondike gold rush era discovery creek). ‘Laminated schist’ has been identified as a host of disseminated gold with additional contributions from gold within cross-cutting quartz veins. Gold-bearing laminated schist unit widths intersected in drilling are up to 40 meters thick at surface over a strike length of 800 meters, as reported in many news releases in 2017.

Discussion:

Assay results have been received from two step-out holes at the Pioneer area (LS17-95 and LS17-96) 500 meters away along strike to the east that intersected a competent unaltered ‘mafic schist’ unit cross-cut by visible gold-bearing quartz veinlets adjacent the Bonanza Fault in LS17-95.

Assay results have also been received from step-out holes at the O’Neill area (LS17-97 and LS17-98) which intersected a pyritic schist 700 meters away along strike to the west of the Lone Star target. Visible gold was observed in LS17-98.

All holes were drilled at -55 degrees dip at 200 degree azimuth. True thickness of mineralization for these intersections requires additional drilling to determine.  An updated plan map of drilling and cross-sections are available on the Company’s website.

Drilling Results:

The Pioneer and O’Neil area drill tests were designed to each be large 500 to 700 meter step-outs beyond the east and west ends of Lone Star target mineralization along the Bonanza fault. Gold mineralization including visible gold was intersected in each area discussed in detail below. The step-out tests successfully expand the known length of the Lone Star target gold mineralization in drill intercepts by 1,200 meters to a new overall total strike length of 2,000 meters, which remains open.

Pioneer 500 meter East Step-Out:

LS17-95 and LS17-96 were drilled 500 meters east off the end of the Lone Star laminated schist target in the Pioneer area. The two holes are located 50 meters apart on section but offset with respect to geology.

LS17-95 intersected a competent brittle mafic unit containing a network of 1 to 5 cm cross-cutting gold-bearing quartz veins which assayed 0.7 g/t gold over 10.7 meters from 71.5 meters downhole, nearing the position of the Bonanza fault.  The brittle mafic unit in proximity to a major fault, hosting a network of gold-bearing quartz veining, is comparable to the Nugget zone geology and mineralization. The Lone Star ‘laminated schist’ target zone is interpreted to lie downhill and behind the area tested by LS17-95 in a different but parallel zone of mineralization.

LS17-96 intersected a later cross-cutting fault. The fault is also mineralized and assayed 0.4 g/t Au over 5.1 meters from 29.8 meters. This gold mineralized interval suggests later faults are introducing additional and potentially overprinting gold mineralization. Recent results of surface prospecting supports this supposition.

O’Neil 700 meter West Step-Out:

A total of three O’Neil area holes, LS17-97 to LS17-99 tested geology approximately 700 meters west from the Lone Star laminated schist target. The three holes form a widespread ‘fence’ in an attempt to detect the along strike continuation of the gold mineralization.

LS17-97 encountered a major late cross-cutting fault containing quartz veins that assays 0.6 g/t Au over 13.7 meters from 9.1 meters downhole. Significantly 350 meters along strike to the southeast an outcrop of quartz veining containing visible gold in the fault has yielded two prospecting grab samples assaying 24 and 96 g/t gold, 110 and 149 g/t silver, and 86 and 110 ppm tellurium respectively. Prospecting grab samples are selective, non-representative in nature, and systematic additional test results may vary significantly.

LS17-98 intersected the Lone Star laminated pyritic schist unit which assayed 0.5 g/t Au over 13.3 meters from 28.9 meters downhole. Visible gold was observed in this interval. An interesting broader interval contained anomalous gold mineralization averaging 0.3 g/t Au over 52.6 meters starting from 25.4 meters downhole.

Also in the O’Neil vicinity, LS17-99 was a short hole testing an area in the unmineralized felsic footwall of the Bonanza fault for other gold mineralized structures. No significant result or assay was obtained.

Drilling and Assay Update:

Drilling is ongoing with two drill rigs beginning the Phase 3 program.  A total of approximately 4,000 meters of drilling for 40 holes is planned, notionally divided into 20 holes for 2,000 meters for each drill. This Phase 3 program is expected to be complete in mid- to late-September, with logging, sampling, and assaying to follow.

All results from Phase 2 drilling LS17-100 to LS17-117 are pending (18 holes pending).

Results for holes LS17-92 to LS17-94 are pending, and are the last remaining holes to report from the Company’s Phase 1 drilling.  These holes targeted the eastern end of the Lone Star target laminated schist unit. (3 holes pending).



Source: Company Press Release